You'll find that bullets and numbering work better when applied
via paragraph styles.

For single-level numbering, use the built-in list styles, which
you can modify to suit your needs: Hold SHIFT and click the arrow
next to the Style box on the Formatting toolbar; Word will show
all styles. Scroll down (if necessary) until you see the List
Number series of styles. Pick one that suits your needs.

For single-level bullets, you can click CTRL+SHIFT+L to apply the
List Bullet style.

For heading/outline numbering, follow the instructions at
http://www.shaunakelly.com/word/numbering/OutlineNumbering.html.